Representatives of Nasdaq Inc NDAQ and other major exchanges will meet with the Texas Governor Greg Abbott on Nov. 20 in Austin as they consider relocation of their trading platforms from New Jersey to Dallas, NBC 5 Dallas-Fort Worth reported Tuesday.
What Happened: The meeting was reportedly spurred by a proposed “financial transaction” tax amounting to a quarter of a cent that New Jersey — the current host of the exchanges' data centers — wants to levy on the 10,000 or so transactions made through electronic infrastructure.
The tax is estimated to generate $10 billion in revenue for the Garden State.
The financial institutions will meet with Abbott under a grouping called “Coalition To Prevent The Taxing Of Retirement Savings.”
A spokesperson for Abbott told NBC 5 DFW that the governor “looks forward to meeting with Nasdaq and showcasing Texas' business-friendly environment, skilled workforce, robust infrastructure, and low taxes, all of which foster greater economic growth in the Lone Star State.”
Why It Matters: The coalition comprises financial heavyweights like Nasdaq, CBOE Global Markets Inc. CBOE, Citadel Securities, Equinix, Inc EQIX, UBS Group AG UBS, TD Ameritrade, and the owner of New York Stock Exchange — Intercontinental Exchange, Inc ICE.
A move to Texas would reportedly lessen Wall Street’s dependence on the East Coast and be a boost for the booming data center industry in North Texas which has attracted the likes of Facebook Inc FB to the Dallas-Fort Worth area due to renewable energy resources.
Other states that have expressed interest in hosting the exchanges' data centers include Virginia, North Carolina, and Illinois, which have all held talks with Nasdaq, according to NBC 5 DFW.
Price Action: Nasdaq Inc shares closed nearly 2% lower at $127.13 on Monday.
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